The Guggenheim Discount Opportunity Strategy Portfolio of CEFs, Series 1 ("Trust") seeks to provide capital appreciation.
Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
This information does not constitute an offer to sell or a solicitation of any offer to buy: nor shall there be any sale of these securities in any state where the offer, solicitation, or sale is not permitted.
Principal Investment Strategy
The Trust will invest in common shares of closed-end investment companies (“closed-end funds”) that are currently trading at a greater discount to their net asset value (“NAV Discount”) than their historical NAV Discount over the past two years. The Trust seeks capital appreciation by selecting closed-end funds that the sponsor believes have the potential to narrow the gap between their current NAV Discount and their historical NAV Discount. The Trust portfolio will include a variety of closed-end funds, including general equity funds, taxable fixed-income funds and balanced/multi-asset funds. The closed-end funds will invest in securities of a variety of asset classes. These asset classes include, but are not limited to:
Please see “Principal Risks” and “Investment Risks” for a description of the risks of investing in each of these asset classes.
An investment can be made in the closed-end funds without paying the sales fee, operating expenses and organization costs of the Trust.
The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC ("GPIM"), an affiliate of Guggenheim Partners, LLC, has selected the securities to be included in the Trust’s portfolio according to the selection criteria described below.
See “Investment Policies” in Part B of the prospectus for additional information.
The Trust’s portfolio was constructed and the securities were selected three business days prior to the initial date of deposit (the “Inception Date”) according to the selection criteria described below.
The security selection process begins by identifying the entire universe of U.S.-listed closed-end funds. Each closed-end fund is then ranked for each the two factors listed below on a scale of 1 through 10, where “1” represents the 10% of closed-end funds ranked highest in a given factor and “10” represents the 10% of closed-end funds ranked lowest in a given factor.
The 40 closed-end funds with the highest average of the two rankings (where ties are broken by selecting the closed-end fund with the higher trading liquidity) will be selected for the Trust portfolio, subject to the following constraints:
The 40 closed-end funds selected for the portfolio will be approximately equallyweighted as of the selection date.
Some of the securities held by the closed-end funds are income-producing securities, including corporate bonds, preferred securities and high-yield bonds. High-yield or “junk” bonds, the generic names for bonds rated below investment-grade, are frequently issued by corporations in the growth stage of their development or by established companies who are highly leveraged or whose operations or industries are depressed. Obligations rated below investment-grade should be considered speculative as these ratings indicate a quality of less than investment-grade. Because high-yield bonds are generally subordinated obligations and are perceived by investors to be riskier than higher rated securities, their prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree.
See “Description of Ratings” in Part B of the prospectus for additional information regarding the ratings criteria.
Risks and Other Considerations
As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The trust also might not perform as well as you expect. This can happen for reasons such as these:
See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.
Please see the Trust prospectus for more complete risk information.
Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.
Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.
Investing involves risk, including the possible loss of principal.
Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Fund Management (Europe) Limited, Guggenheim Partners Japan Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management. Securities offered through Guggenheim Funds Distributors, LLC.
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This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation. Investing involves risk, including the possible loss of principal.